New Electronic Code containing the legislation on Foreign Investments in Spain
Garrigues and the Official State Gazette Agency have presented the new Electronic Code containing the legislation on Foreign Investments in Spain, which is a compilation of all commercial and tax legislation regulating the entry into the Spanish market of productive investments from abroad.
The rules contained in the new code are divided up into various sections pertaining to different areas of law. The commercial law block includes both the legislation regulating movements of capital and economic transactions with nonresidents, and the specific regulations on foreign productive investments, which have been deregulated in Spain, with certain exceptions relating to the real estate sector, investments from tax havens and other regulated sectors.
To complete the information provided in this commercial law section, there is a section containing the tax rules applicable to transactions of this kind with nonresidents, particularly in relation to Nonresident Income Tax and Corporate Income Tax. The information in the tax section is complemented, in turn, with a block containing all the rules on money laundering and the financing of terrorism.
To ensure that everything is covered, the code includes all the Agreements on Reciprocal Promotion and Protection of Investments (APPRIs), the double tax treaties signed by Spain with over 100 countries worldwide, and even the information exchange agreements which have been formalized by the Spanish authorities with other states and play such an important part in combatting fraud at international level.
One of the major advantages of this new electronic code is the fact that it can be updated on an ongoing basis, so that both legal practitioners and other interested parties – such as law students or students of other disciplines – are able to consult at any given moment the most recent legislation applicable in relation to a particular question. The Director of the BOE, Vicente Tuero, has announced that this code is shortly to be translated into English, to make it accessible to even more users.
Both this code and the hundred or so specific legal texts which have already been produced in a digital format by the BOE in collaboration with Garrigues or other Spanish law firms, can be consulted free of charge. In the last two years alone, there have been more than 5 million downloads of the electronic codes offered by the BOE.
Garrigues Communications Department